We have the following information about five different shares:

Shares:

1. expected return: 5% standard deviation for return: 10%

2. expected return: 10% standard deviation for return: 20%

3. expected return: 8% standard deviation for return: 16%

4. expected return: 12% standard deviation for return: 25%

5. expected return: 7% standard deviation for return: 15%

Calculate the expected return on a portfolio consisting of 20% of each of the five shares.

Answer rating: 100% (QA)

To calculate the expected return of a portfolio consisting of multiple shares we need to consider th... View the full answer